Chevron signed preliminary agreements with Basra Oil Co granting exclusive 12-month rights to negotiate terms and exchange confidential data for the West Qurna 2 field. The arrangement requires approvals from the U.S. Treasury and the Iraqi government before Chevron can assume operations.

Lukoil’s 75% stake in West Qurna 2 was compelled to sell following U.S. sanctions on the Russian producer, drawing interest from Exxon Mobil and private equity bidders. Iraq’s cabinet granted Chevron exclusive talks, reflecting Baghdad’s preference for U.S. majors to mitigate geopolitical risks.

This agreement complements Chevron’s recent Middle East investments, including the Nasiriyah project and talks to extend its Tengiz field license in Kazakhstan. Chevron boosted its exploration budget by 50% and completed a $48 billion acquisition of Hess to bolster reserves and production growth into the next decade.